11Security for loans

11 Security for loans

(1)  The repayment of any loan made under the Scheme together with the interest on the loan is to be secured in the manner determined by the Authority.

(2)  The Authority may, in the interests of a farmer, consent to the postponement of any security given by the farmer in favour of another person if –

(a) that other person agrees in writing with the Authority to lend money to the farmer in consideration of the postponement; and

(b) the money is lent to the farmer for such purposes as the Authority may determine.

(3)  Where a security taken by or on behalf of the Authority –

(a) is in respect of any chattels or land, the chattels or land must not be disposed of or otherwise dealt with without the consent of the Authority; and

(b) is a mortgage in respect of land under the Land Titles Act 1980 , the mortgage operates as provided in this section from the date of its lodgement for registration.

(4)  Where a loan has been made under the Scheme –

(a) the money lent; or

(b) any right of the borrower to the loan under any instrument or by reason of a deposit; or

(c) any property bought with the loan –

is not and must not be affected by, or taken under, any process of execution or any judgement or order against the borrower obtained by a person other than the Authority.